NEW YORK: Global stock markets went into a freefall Friday as panicked investors found no place to hide, although Wall Street managed to stem the losses in a stomach-churning session of ups and downs.

Stock exchanges were in turmoil worldwide amid heightened worries about a raging financial firestorm that showed no signs of easing even as global finance officials met in Washington and new efforts were made to shore up troubled banks.

Some markets plunged 10 percent in the worst performance since the 1987 stock crash as part of a global meltdown that began with Tokyo's 9.6 percent nosedive.

On Wall Street, the Dow Jones Industrial Average saw early losses of as much as 700 points, and two sudden spurts into positive territory before closing down 128.00 points (1.49 percent) at 8,451.19.

The London FTSE 100 index of leading shares fell 8.85 percent to finish at 3,932.06, its sharpest daily plunge since the 1987 stock market crash. In Paris the CAC 40 lost 7.73 percent to finish at 3,176.49 while the Frankfurt Dax shed 7.01 percent to end the week at 4,544.31.

The meeting brings together ministers and central bankers of the United States, Germany, Japan, France, Britain, Italy and Canada. Bush has agreed to host the G7 finance ministers on Saturday.

Brazil's Bovespa index slumped 3.97 percent, bringing its loss for the year to 44 percent. Canada's S&P/TSX index tumbled 5.57 percent. The Tokyo market suffered its biggest loss in two decades, surpassing Wednesday's plunge of 9.38 percent.